Changing industrial structure – balance between different sectors & how manufacturing industry can stimulate economic growth. ‘Uganda: A Case Study of a LIC’ by Owen and Witts 2017 and associated resources are licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Starter: Employment Structure in Uganda Primary Secondary Tertiary 67.7% 7.2% 25.1% From: http://www.fes-kenya.org/media/publications/Employment%20Challenges%20-%20Uganda.pdf Your teacher will give you 10cm of strawberry shoelace Divide your shoelace into three sections to represent employment in the three sectors in Uganda What are the implications of this employment structure for people in Uganda and for the development of the country?

Lesson objectives Know which sectors of industry are most dominant in Uganda’s employment structure Understand some implications of this employment structure Consider how manufacturing could stimulate economic growth in Uganda using an example Understand the meaning of the multiplier effect and how it can be applied to an example

Key term - Industrial Structure The relative proportion of the workforce employed in different sectors of the economy (primary, secondary, tertiary and quaternary).

How could manufacturing stimulate growth in Uganda? Ramatha Ggoobi from Makerere University Business School argues that investing in manufacturing could bring a range of benefits: Widening the range of exports so Uganda isn’t dependent on exports such as vegetables Increasing GDP per capita Creating jobs He would like to see more industries manufacturing textiles, leather products and metals. http://www.monitor.co.ug/Business/Prosper/Uganda-must-invest-- manufacturing/688616-3136832-igopdg/index.html

TASK 1: Investing in the future You teacher will give you cards showing information about three possible investment opportunities. Which would you choose to invest in? Why? Think back to the potential benefits of investing in manufacturing. What benefits would this scheme bring? Stretch yourself: What obstacles may this scheme face? How could they be overcome?

Investment Opportunity 1: Agro-processing Invest in technology to allow farmers to process their crops and become small- scale industrialists Example: Farmers could roast and grind their own coffee instead of selling the raw coffee beans. Example: Farmers could make pasta from the maize they grow.

Investment Opportunity 2: Definition Africa Definition Africa is a business which buys blank t-shirts from factories in Kenya, Uganda and Tanzania and prints them with designs reflecting life in Uganda. See: http://edition.cnn.com/2014/09/02/busin ess/definition-africa-t-shirt-brand/

Investment Opportunity 3: Processing skins and hides There is demand for a factory to process skins and hides into leather in Uganda. This is hindering the production of leather goods and means cheap synthetic goods are imported. Ugandans buy 25 million pairs of shoes each year, but only 1 million of them are made in Uganda. http://www.newvision.co.ug/new_vision/news/133825 2/failing-nurture-leather-industry-costing-uganda

TASK 2: One thing leading to another When one industry develops in an area it often stimulates growth in other industries. This is known as the MULTIPLIER EFFECT. Look back at your choice of investment opportunity. How would it affect other industries? Draw a diagram to show how your chosen investment opportunity would create a multiplier effect. Include an explanation of the multiplier effect in your work.

Multiplier Effect

Example of Multiplier Effect Factory opens to recycle plastic bottles into clothing Businesses set up to collect bottles grow Shops selling clothes have a new product to sell Street children earn money for food by collecting bottles Employees have money to spend in local shops Businesses supplying sacks for collectors grow Shop workers spend their money in other shops Packaging companies benefit from supplying bags

Reflection... Imagine you are pitching the investment opportunity you have chosen to other investors. Come up with a one minute pitch for the opportunity. Share ideas.

Homework (Flipped learning) What is a TNC?